Possible Violation of IC Agreement Compensation Terms

This is a discussion on Possible Violation of IC Agreement Compensation Terms within the Business Contracts & Partnerships forum, part of the BUSINESS & FINANCE LAW category; I'd been performing independently contracted, commission paid sales for an e-newsletter since March, 2011 and was suddenly terminated on 10/24 ...

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Old Nov 2nd, 2011, 03:14 PM   #1
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Default Possible Violation of IC Agreement Compensation Terms

I'd been performing independently contracted, commission paid sales for an e-newsletter since March, 2011 and was suddenly terminated on 10/24 by the "Sales Manager" due - he claims - for failure to comply with company directives from superiors. (What I had done was to send a follow up bulk email to multiple previous contacts with whom I'd been in conversation about possible ad purchases and had changed the format somewhat by adding bullet points, etc, to the canned email normally sent out). There had been a few somewhat contentious discussions between us over the past months. I’ve had several reasons to suspect the credibility and honesty of the company – just one being that the two principles with whom I’d been dealing – the Sales Manager and the advertising Art Director are actually the company owners but have been operating and responding to my inquiries under assumed last names, company titles, and without fully owning up to their identities.

The excerpted language on compensation of the IC Agreement that I signed (and that I had to REQUEST be counter signed and delivered to me) reads: "In the case of termination for cause, Principal shall have no obligation to Independent Contractor for compensation or any other form of benefit under this agreement except for compensation EARNED prior to the effective date of termination”. In his termination of contract email to me, however, the language he used was: “…We will be performing a full accounting in regards to commissions owed you, however keep in mind that this only applies to sales COLLECTED before the date and time of this notice.”

On 10/24 – the date the contract termination was emailed to me (suddenly - without prior notice), I had five ad commitments in process from organizations due to place their ads in the November issue (distributed online on 11/1) with their payments on the way. Also, on 10/26, another prospect I’d previously pitched for an ad sale called me back to see if there was still time to insert an ad for the November issue. In spite of the fact that I’d been terminated, I didn’t want to penalize prospects uninvolved in my personal dispute with the company and forwarded her the necessary information to proceed from my personal email address (my company email had been deactivated, of course).

There are – no doubt – several other organizations with whom I’d had sales conversations prior to my termination, as well, that may have contacted the company since to commit to ad placement for the November or December issue. I don’t know if the legal language of the contract covers THESE (technically, these are EARNED sales), too but – minimally - my interpretation of the contract language would seem to cover at least those five that HAD, in fact, submitted a request to be included in the November issue.

Please advise.

Last edited by AdviceRequest; Nov 2nd, 2011 at 03:16 PM. Reason: Font directives appear in posting...also paragraph spacing clarified
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Old Nov 2nd, 2011, 03:41 PM   #2
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Default Re: Possible Violation of IC Agreement Compensation Terms

I wish to inform you that your contract will govern your relations. In this regard if the agreement provides that you will get commission earned by you then you are entitled to commission earned by you. For the ads which you have already brought for November you are entitled because that business commission is earned by you. You may inform sales manager that agreement mentioned commission earned and this may include commission after date of termination because of work did before termination. Adding date of termination is change of agreement terms.

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